Radico Khaitan, the renowned Indian company, reported a 10% rise in first-quarter profit on Thursday. This impressive growth was fueled by the soaring demand for its premium liquors, including Rampur whisky, Jaisalmer gin, and Magic Moments vodka.
In the April-June quarter, the company’s consolidated net profit surged to 682.7 million rupees ($8.25 million), marking a significant increase from 619.9 million rupees recorded in the same period the previous year.
Experiencing a remarkable growth trajectory, the company witnessed a substantial surge in revenue from operations, soaring over 26% to reach 40.23 billion rupees. This impressive increase was primarily driven by a remarkable 40% spike in sales of their premium liquors. Additionally, the company also boasts a “regular” segment featuring more affordable alcohol options, including 8 PM whisky, Old Admiral brandy, and Contessa rum.
Radico Khaitan attributed its improved margins to a strategic emphasis on expanding its premium business, coupled with prudent price adjustments implemented over the past four quarters. Furthermore, the favorable trend in raw material prices also played a role in bolstering their profitability.
Lalit Khaitan, Chairman and Managing Director of Radico Khaitan Limited, said, “Although we have faced raw material pressure in the short term, the mid-to long-term growth and margin trajectory remain intact.”
United Spirits, the producer of renowned brands like Smirnoff vodka and Black Dog whisky, also reported an increase in quarterly profit. This growth was primarily driven by the decline in raw material prices and reduced excise duty expenditure.
Prior to the release of the results, Radico Khaitan’s shares concluded the day 0.7% higher. During the April-June quarter, the company’s shares experienced a moderate increase of 1.7%. In comparison, United Spirits observed a significant surge, with their shares gaining an impressive 20.6% during the same period.
